ECONOMIC CALENDAR
10:00 AM Pending Home Sales
3:00 PM Consumer Credit
A shaky and volatile session with huge swings saw the stock indexes ending mixed.
The markets opened higher and sold off strongly during the first hour of trading reaching our final target for this down leg at 1410.00 in the E-mini S&P futures, 1943.75 in the E-mini NASDAQ futures and 716.70 in the E-mini Russell futures. Large buying volume was produced as the indexes moved lower to test the November lows. After making the lows, the indexes rallied reaching 1431.25 in the E-mini S&Ps, 1992.00 in the E-mini NASDAQ and 734.70 in the E-mini Russell. The move was reversed and all the indexes move lower once more to test the early lows. Unable to print new lows for the day, a quick short covering rally drove the S&Ps back to 1426.50 before pulling back on to the close.
Despite that the indexes reversed from their intraday highs, the double bottoms in all the indexes and that the downside objective in the S&Ps resulted in a successful test of the recent lows could be an early indication of some kind of recovery during the coming sessions. On the other side of the coin, the way the rally to the 1431.00-1432.00 area was reversed indicates a lack of commitment to the long side, but if that high is broken the market should trade higher during the coming sessions. It would be premature to call for a trend up as the indexes have been moving lower very quickly but yesterday’s fat reaction from the lows could be a sign that the declines may end. Volume is increasing also as more and more traders are willing to buy on dips.
It looks like the markets could be range bound for today’s session as long as yesterday’s lows and highs hold, but the key factor will be holding above yesterday’s lows. It was very important in yesterday’s market sentiment the fact that the cash Dow tested and held three times the 12,750 level, just below the long term trend line, and closed back above the 12,800 level. This could spark a 250 point move to the upside pushing up all the other indexes, but the same move could be seen to the downside if this index starts to break bellow yesterday’s low.
For today’s full report and intraday updates, please read the authors bio.
TODAY’S SUPPORT, PIVOT AND RESISTANCE LEVELS
S&P
NASDAQ
RUSSELL
Resistance 3
1436.75-1438.00
2012.00-2015.00
741.20-741.70
Resistance 2
1432.50-1433.00
1998.00-2000.00
735.40-736.70
Resistance 1
1425.50-1426.75
1984.00-1985.00
730.10-730.80
PIVOT
1423.50
1972.00
726.70
Support 1
1418.50-1417.50
1965.75-1964.00
725.30-723.50
Support 2
1410.25-1409.25
1947.50-1946.75
717.40-716.90
Support 3
1400.00-1399.00
1933.00-1932.00
708.10-707.60
S&P
NASDAQ
RUSSELL
FIBONACCI
FIBONACCI
FIBONACCI
1467.60
2070.07
763.30
1462.40
2058.68
759.10
1454.00
2040.25
752.30
1445.60
2021.82
745.50
1440.40
2010.43
741.30
1432.00
1992.00
734.50
1423.60
1973.57
727.70
1421.00
1967.88
725.60
1418.40
1962.18
723.50
1410.00
1943.75
716.70
1401.60
1925.32
709.90
1396.40
1913.93
705.70
1388.00
1895.50
698.90
1379.60
1877.07
692.10
1374.40
1865.68
687.90
DAILY PROJECTIONS
S&P
NASDAQ
RUSSELL
AS DAILY HIGH
1443.50
1985.75
736.20
AS DAILY LOW
1404.50
1933.25
712.80
Support, Pivot and Resistance levels courtesy of Arturo Stern. He authors the E-mini Daily trading advisory which gives technical analysis on all the major stock index futures contract. For more of his analysis go to www.theminitrade.com Arturo can be reached at arthur@theminitrade.com
Futures and options trading involve risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. This is neither a solicitation nor an offer to buy or sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in this document. The past performance of any trading system or methodology is not necessarily indicative of futures results.
All the material contained here or in any communication is only for information purposes and part of our thoughts and personal conclusions.
